4.The balance sheet of Venner and Wigstaff, LLP. Immediately before the partnership was incorporated as Venwig Corporation follows:

Cash...............................................................

P10,500

Trade accounts payable

P 16,400

Trade accounts receivable

15,900

Venner, capital

60,000

Inventories..........................................

42,000

Wigstaff, capital

52,000

Equipment (net of P18,000

Depreciation)...............

60,000

______

Total............................................................

P128,400

Total...................................................

P128,400

The following adjustments to the balance sheet of the partnership were recommended by a CPA before accounting records for Venwig Corporation were to be established:

A.An allowance for doubtful accounts was to be established in the amount of P1,200.

B.Short-term prepayments of P800 were to be recognized.

C.The current fair value of inventories, P48,000, and the current fair value of equipment , P72,000, were to be recognized.

D.Accrued liabilities of P750 were to be recognized

Assuming that 10,000 shares of P5 par common stock were to be issued to the partners in exchange for their equities in the partnership. Fifty thousand shares of common stock were authorized to be issued. Determine the total assets after all adjustments were considered:

A.

P145,250

C.

P146,000

B.

P129,600

D.

P110,800